Sanara MedTech (SMTI) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 increased 9% year-over-year to $28.1M, driven by strong growth in soft tissue repair products, while bone fusion product sales declined slightly.

• Gross margin improved to 93% in Q2 2026, up from 92% in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $5.0M, up from $4.7M in Q2 2025, reflecting revenue growth offset by higher SG&A expenses.

• Net loss from continuing operations was $0.4M for Q2 2026, compared to net income of $0.5M in Q2 2025, primarily due to increased SG&A and interest expense.

• Announced a definitive merger agreement with MiMedx Group on July 29, 2026, expected to create a leading regenerative medicine company.

Financial highlights

• Q2 2026 net revenue: $28.1M (+9% YoY); six months ended June 30, 2026: $55.9M (+14% YoY).

• Gross profit: $26.2M for Q2 2026 (+10% YoY); gross margin: 93%.

• SG&A and operating expenses rose 14% YoY in Q2 2026, mainly due to higher sales/marketing, compensation, and legal/advisory costs.

• R&D expenses: $1.2M in Q2 2026, up slightly YoY.

• Interest expense: $1.8M in Q2 2026, reflecting higher debt balances and cash payments on term loan.

• Adjusted EBITDA: $5.0M in Q2 2026 (+6% YoY); $9.3M for six months (+25% YoY).

• Cash and cash equivalents: $15.4M as of June 30, 2026; long-term debt: $46.5M.

Outlook and guidance

• Management expects cash and cash equivalents, combined with operating cash flows, to be sufficient to fund operations and growth strategy for at least the next 12 months.

• No material cash spend anticipated for winding down discontinued THP segment for the remainder of 2026.

• OsStic, a licensed synthetic injectable bone void filler, remains on track for market introduction in Q1 2027.

• Focus remains on expanding the surgical product portfolio, U.S. market penetration, and distributor relationships.